What is the duration of the non-solicitation period after the Counselor Realty franchise agreement expires, is terminated, or is transferred?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement and for a period of twenty-four (24) months after it expires, is terminated or is transferred, you will not alone, or in any capacity
with another person or entity, within the United States and any other geographical area in which Counselor operates, solicit or cause to be solicited any person or entity that is (or was within the previous six (6) months) an agent, employee or independent contractor of Counselor or another Counselor franchisee, for the purpose of hiring or contracting such person or entity to work for you or any other party, or for the purpose of inducing them to leave such party's employment or contract with Counselor or another Counselor franchisee.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the non-solicitation period lasts for 24 months following the expiration, termination, or transfer of the franchise agreement. During this 24-month period, a former franchisee is prohibited from soliciting any individual or entity that is, or was within the previous six months, an agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee. This restriction applies within the United States and any other geographical area in which Counselor Realty operates.
This non-solicitation clause prevents a former franchisee from poaching talent from the Counselor Realty system. The clause aims to protect Counselor Realty's network and the investment that franchisees make in their staff. The clause covers not only current agents, employees, and contractors but also those who were associated with Counselor Realty within the six months preceding the solicitation attempt.
For a prospective Counselor Realty franchisee, this means that upon leaving the system, they cannot actively recruit or attempt to hire current or recent personnel from Counselor Realty or its other franchisees for two years. This restriction could impact their ability to quickly establish a competing business using individuals familiar with the Counselor Realty system. It is important to note that this restriction applies across the United States and any other regions where Counselor Realty operates, significantly limiting the scope in which a former franchisee can operate without potentially violating the agreement.
It is common practice in franchising to include non-solicitation clauses to protect the brand's network and prevent unfair competition from former franchisees. The specific duration and scope of these clauses can vary among different franchise systems, so prospective franchisees should carefully review these terms in the Franchise Agreement.